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IMF Urges Egypt to Watch Inflation After New Subsidy Cuts

CAIRO (Capital Markets in Africa) – The International Monetary Fund urged Egypt to maintain a tight monetary policy as a new round of subsidy cuts rekindled inflation worries. The Washington-based lender praised Egypt’s implementation of economic reforms as “instrumental in achieving macroeconomic stabilization, with external and fiscal deficits narrowing, inflation and unemployment declining, and growth accelerating.” At the same time, the central bank “should retain its restrictive stance to counter second-round effects of fuel and electricity price increases,”…

Kenya Requests Six-Month Extension of Standby Loan, IMF Says

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NAIROBI (Capital Markets in Africa) – Kenya asked the International Monetary Fund for a six-month extension to a $1.5-billion standby facility to allow more time to complete delayed reviews of an IMF-supported program. The government committed to reducing its fiscal deficit and “substantially modifying” controls on commercial interest rates to achieve the objectives of the program, the Washington-based lender said in an emailed statement. The request for a six-month extension of the precautionary financing will be presented to…

IMF Urges Nigeria to Keep Tight Monetary Policy, Curb Inflation

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LAGOS (Capital Markets in Africa) – The Central Bank of Nigeria should maintain its tight monetary-policy stance and consider raising interest rates to help anchor price expectations, the International Monetary Fund said. Increasing the monetary policy rate from 14 percent to exceed price growth, which stood at 15.1 percent in January, “would more transparently reflect CBN intentions, help anchor inflation expectations, and signal forward-looking policy,” the Washington-based lender said in a report release Wednesday after an Article IV consultation. Governor Godwin…

Seeking IMF Bailout, Debt-Laden Congo Steps Up War on Graft

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KINSHASA (Capital Markets in Africa )- Authorities in the Republic of Congo plan to arrest more officials as part of an anti-corruption drive to meet conditions set by the International Monetary Fund for a bailout. Oil-producing Congo owes creditors at least $9.14 billion and sought support from the IMF last year. The Washington-based lender has insisted the government make “bold and immediate governance reforms” before any package is considered. Congo’s intelligence service last month arrested…

IMF Sees Tough South Africa Budget Unless Fiscal Risk Sorted

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JOHANNESBURG (Capital Markets in Africa) – South Africa will face more fiscal difficulties and higher financing costs should state-owned companies’ debt continue rising and if the nation’s local debt is downgraded to junk, the International Monetary Fund said. If state entities such as cash-strapped power utility Eskom Holdings SOC Ltd. and South African Airways request more state support, the government will have to step in to help, removing fiscal space for “more socially useful activities,” Montfort…

IMF Reaches Initial Agreement With Egypt for $2 Billion Tranche

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CAIRO (Capital Markets in Africa) – The International Monetary Fund reached a staff-level agreement with Egypt to unlock a $2 billion loan installment, and said economic reforms in the Arab world’s most populous nation are starting to pay off. Egypt and the Washington-based lender signed a 3-year, $12 billion agreement a year ago, of which $4 billion has already been disbursed. The next $2 billion installment is subject to approval from the IMF’s executive board, and Egyptian authorities…

IMF says rising debt, political risk dim sub-Saharan Africa’s economic outlook

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LAGOS (Capital Markets in Africa) – Economic growth is expected to rise to 3.4 percent in sub-Saharan Africa next year from 2.6 percent in 2017, the IMF said in a report on Monday, but warned that rising debt and political risks in larger economies would weigh down future growth. Nigeria and South Africa are the biggest economies in Africa south of the Sahara, but both nations have been clouded by political uncertainty linked to the…

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